FNSTPB401 Complete Business Activity and Instalment Activity Statements
(MAS001 Activity Statements)
• This assignment contains multiple Assessment Activities
• You are required to attempt all questions.
• Please complete the Declaration of Authenticity and the Declaration of Independent Supervision (below)
• Save this assignment (e.g. on your desktop)
• To complete the assignment, read the instructions for each question carefully.
• You may be required to refer to your learning materials or other sources to complete this assessment.
• You are required to type all your responses in the spaces provided
• Once you have completed all parts of the assignment and saved it, login to the Monarch Institute LMS to submit your assignment for grading
• To submit your assignment click on the link in the LMS “Submit TPB Written Assessment – Activity Statements” in the Assessment section of your course and upload your assignment file.
• Please be sure to click “Continue” after clicking “Submit”. This ensures your Assessment has been sent and that your assessor receives notification of your submission – very important!
Declaration of Understanding, Compliance and Authenticity *
“I have read and understood the assessment instructions provided to me in the Learning Management System and within this document.
I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism.”
Independent Supervision of Assessment
In accordance with the requirements of the Tax Practitioners Board (TPB), you are required to complete your assessment for this unit under some form of independent supervision.
Declaration of Independent Supervision *:
-I declare that I have completed this entire assessment under independent supervision in accordance with the requirements of the Tax Practitioners Board.-
Student Name*: Date:
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declarations.
Important assessment information
Aims of this assessment
This assessment focuses on assessing learners for their skills, knowledge and performance in regard to carrying out Business Activity & Instalment Activity Statements tasks for the purpose of meeting the education and independent assessment requirements of the Tax Practitioners Board (TPB).
Marking and feedback
This assignment contains multiple Assessment Activities each containing specific instructions.
You are required to attempt all questions.
This particular assessment forms part of your overall assessment for the following unit(s) of competency:
• FNSTPB401 Complete Business Activity and Instalment Activity Statements (MAS001)
• Grading for this assessment will be deemed “Competent” or “Not-Yet-Competent” in line with specified educational standards under the Australian Qualifications Framework.
What does “competent” mean?
These answers contain relevant and accurate information in response to the question/s with limited serious errors in fact or application. If incorrect information is contained in an answer, it must be fundamentally outweighed by the accurate information provided. This will be assessed against a marking guide provided to assessors for their determination.
What does “not-yet-competent” mean?
This occurs when an assessment does not meet the marking guide standards provided to assessors. These answers either do not address the question specifically, or are wrong from a legislative perspective, or are incorrectly applied. Answers that omit to provide a response to any significant issue (where multiple issues must be addressed in a question) may also be deemed not-yet-competent. Answers that have faulty reasoning, a poor standard of expression or include plagiarism may also be deemed not-yet-competent. Please note, additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide which can be found here: http://www.monarch.edu.au/student-info/
What happens if you are deemed not-yet-competent?
In the event you do not achieve competency by your assessor on this assessment, you will be given one more opportunity to re-submit the assessment after consultation with your Trainer/ Assessor. You will know your assessment is deemed ‘not-yet-competent’ if your grade book in the Monarch LMS says “NYC” after you have received an email from your assessor advising your assessment has been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in meeting competency after resubmitting your assessment, you will be required to repeat those units.
In the event that you have concerns about the assessment decision then you can refer to our Complaints & Appeals process also contained within the Student Information Guide.
Expectations from your assessor when answering different types of assessment questions:
Knowledge based questions:
A knowledge based question requires you to clearly identify and cover the key subject matter areas raised in the question in full as part of the response.
Performance based questions:
A performance based question requires you to clearly demonstrate your ability to complete certain tasks, that is, to perform these tasks.
Finally, good luck with your learning and assessments and remember your trainers are here to assist you ?
Short Answer and Worked Answer Questions
FNSTPB401 Complete Business Activity and Instalment Activity Statements (MAS001) (FNSBKG404)
The following questions are based on the material in the textbook “Carry Out Business Activity & Instalment Activity Statement Tasks” by Phillip Charles & Sonia Deaner.
Activity instructions to candidates
• This is an open book assessment activity.
• You may be required to refer to your learning materials or other sources to complete this assessment.
• You may use a financial calculator or computer application to help calculate values
• You are required to read this assessment and answer all questions that follow.
• Please type your answers in the spaces provided.
• Please ensure you have read the “Instructions’ and “Important assessment information” at the front of this assessment
• Time allowed for pre-reading only (not for attempting of assessment activities) of the assessment instructions: 15 minutes
• Time allowed for completion of this assessment activity: 2-3 hours (excludes the pre-reading time).
The following questions are based on the material in Chapter 1: The Business Tax System
Q1: What is a BAS Service Provider? Explain.
(Note: this question is not asking about ‘BAS Services’)
The following questions are based on the material in Chapter 2: PAYG & IAS
Q2: Match the following terms with their respective definitions:
a. An arrangement where a separate contract is entered into to perform the original contract.
b. The process by which amounts are deducted from payments made to others and remitted to the ATO. This is done using BAS and IAS.
c. Payments made using a Business Activity Statement or Instalment Activity Statement (if not registered) including tax on business and investment income.
d. The PAYG form that states the total of the withholding payments and the amounts withheld.
e. A written agreement between a business and a worker to bring work payments into the PAYG withholding system.
f. Amounts that include sales, fees, interest income, rental income and dividends.
g. The amount will usually be based on previous year’s tax on business and investment income.
h. A penalty for underpaying instalments.
1. General Interest Charge
2. Instalment Income
3. Notional Tax
4. PAYG Instalments
5. PAYG Withholding
6. Payment Summary
8. Voluntary Agreement
The following questions are based on the material in Chapter 3: The Good & Services Tax
Foxwedge Pty Ltd operates a small business. Foxwedge Pty Ltd accounts for and reports GST on an accrual basis quarterly. During the June quarter the following transactions occurred.
Complete the GST Calculation Worksheet for Foxwedge’s June quarter BAS.
All amounts include GST where applicable.
Sale of goods 200,900
Export sales 11,450
GST-free sales 5,000
Commercial rent received 12,900
Sale of printing equipment 19,500
Bank interest received 2,309
Dividends received 236
Bank loan received 300,000
Salaries and wages 57,600
Rent of business premises 14,000
General business expenses 32,215
Purchase of fax machine 4,880
Printing supplies 42,420
Interest paid 100
Bank charges 560
GST Calculation Worksheet for Foxwedge Pty Ltd, June quarter BAS:
GST amounts you owe the Tax Office from sales
G1 Total sales (including and GST) G1 $
G2 Export sales G2 $
G3 Other GST-free sales G3 $
G4 Input taxed sales G4 $
G5 G2 + G3 + G4 G5 $
G6 Total sales subject to GST G6 $
(G1 minus G5)
G7 Adjustments (if applicable) G7 $
G8 Total sales subject to GST after adjustments G8 $
(G6 + G7)
G9 GST on sales (G8 divided by eleven) G9 $
GST amounts the Tax Office owes you from purchases
G10 Capital purchases G10 $
(including and GST)
G11 Non-capital purchases G11 $
(including any GST)
G12 G10 + G11 G12 $
G13 Purchases for making input taxed sales G13 $
G14 Purchases without GST in the price G14 $
G15 Estimated purchases for private use G15 $
or not income tax deductible
G16 G13 + G14 + G15 G16 $
G17 Total purchases subject to GST G17 $
(G12 minus G16)
G18 Adjustments (if applicable) G18 $
G19 Total purchases subject to GST after G19 $
adjustments (G17 + G18)
G20 GST on purchases (G19 divided by eleven) G20 $
The following questions are based on the material in Chapter 4: Other Reporting Requirements
Carolyn’s Cars wishes to sell a car worth $69,300 including GST, but before Luxury Car Tax (LCT).
Calculate the amount of LCT using the 2017-18 threshold amount and determine the total amount Carolyn’s should charge for the car (show your workings).
Tip: If you cannot find the LCT threshold for this period in your textbook, visit www.ato.gov.au and search for 'LCT threshold'.
1. Amount of LCT:
2. Total amount to be charged for car:
Solitude Springs is a resort in a remote part of North West Australia and must generate its own electricity using a generator. In December 2017 quarter it purchased and used 5,934 litres of petrol for electricity generation.
Calculate Solitude Spring’s Fuel Tax Credit entitlement (show your workings).
Tip: If you cannot find the rate for this period in your textbook, visit www.ato.gov.au and search for 'FTC rates'.
Wonderful Wines is a winery in the Clare Valley and operates a cellar door selling wine direct to the public. In the December quarter it made sales of $97,235 including GST and Wine Equalisation Tax (WET). Wonderful Wines uses the half retail price method for calculating its WET liability.
Calculate the WET payable by Wonderful Wines on the December BAS (show your workings).
Cherry Cosmetics is a cosmetic company and has provided the following fringe benefits to its employees during the year ended 31 March 2018:
• Entertainment food and drinks $13,200 (including GST)
• A statutory interest amount of $10,000 on free loans provided to employees.
i. Identify the benefits as Type 1 or Type 2 and
ii. Calculate Cherry’s FBT liability for the 2018 FBT year (show your workings).
Tip: If you cannot find the rate and gross-up factors for this FBT year in your textbook, visit www.ato.gov.au and search for 'FBT rate'
i. Entertainment food & drinks – TYPE:
i. Statutory interest amount – TYPE:
ii. FBT liability calculations:
The following questions are based on the material in Chapter 5: completing the BAS
Q 5: Sparky’s Electrical Wholesale is registered for GST and reports on a quarterly basis.
The company elects to use Option 1 for GST, Option 2 for the PAYG tax instalment and also need to pay an FBT instalment amount.
Sparky’s has provided the following information relating to the December quarter BAS.
G9 GST on sales $32,432
G20 GST on purchases $21,188
FBT instalment $10,000
PAYG tax withheld $14,200
PAYG instalment income $427,438
Commissioner’s instalment tax rate 5.90%
Complete the ‘Summary’ and ‘Payment or Refund’ sections for the December quarter BAS.
If you are using GST Option 3 leave 1B, 1C, 1D, 1E, 1F blank
Amounts you owe the Tax Office
GST on sales or GST instalment 1A $
Wine Equalisation Tax 1C $
Luxury Car Tax 1E $
PAYG tax withheld 4 $
PAYG income tax instalment 5A $
FBT instalment 6A $
Deferred company/fund instalment 7 $
1A + 1C + 1E + 4 + 5A + 6A + 7 8A $
Amounts the Tax Office owes you
GST on purchases 1B $
WET refundable 1D$
LCT refundable 1F $
Credit from PAYG income tax instalment variation 5B $
Credit from FBT instalment variation 6B $
1B + 1D + 1F = 5B + 6B 8B $
Payment or refund?
Is 8A more than 8B? (indicate with X)
Yes, then write the result of 8A minus 8B at 9. This is the amount payable to the Tax Office.
No, then write the result of 8B minus 8A at 9. This is the amount refundable to you (or offset against any other tax debt you have).
Your payment or refund amount
The following questions are based on the material in Chapter 6: Advanced BAS Topics
Q 6: What are the two methods available for accounting for GST? Explain each method.